Cathie Wood Trims Twitter Stake By $8.7M As Elon Musk Declines Board Seat

Cathie Wood’s Ark Investment Management on Monday lowered its exposure to Twitter Inc TWTR, a day after billionaire entrepreneur and Tesla Inc TSLA CEO Elon Musk decided not to join the microblogging company’s board.

Ark Investment sold 185,900 shares, estimated to be worth $8.74 million, in the social media company.

Twitter stock closed 1.7% higher at $47 a share on Monday and is up 10.2% so far this year.

St. Petersburg, Florida-based Ark has significantly trimmed its stake in Twitter this year, with a bulk of the share sales happening in February, when the company reported quarterly earnings.

The popular investment firm currently holds shares in Twitter via two of its six actively traded exchange funds — the Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ETF ARKF.

The two ETFs held 1.32 million shares, worth $61.16 million, in Twitter, before Monday’s trade.

The latest sale lowers Ark Invest’s exposure to Twitter by about 14%.

Twitter CEO Parag Agrawal said on Sunday Musk declined to join the company’s board. The world’s richest man owns a 9.1% active stake in the social media company and remains its largest individual shareholder.

An updated regulatory filing on Monday revealed that Musk is now free to buy a significantly larger share in Twitter. A prior agreement prohibited him from being the beneficial owner of more than 14.9% of Twitter's common shares.